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Punjab inherited Rs 14,191 crore pay arrears; ₹6,000 crore paid

Punjab inherited Rs 14,191 crore pay arrears; ₹6,000 crore paid
Punjab has cleared over ₹6,000 crore in pay commission arrears, reviewing HC ruling: Cheema · livemint.com

The government of Punjab, a state in India, pays salaries to people who work for it, like teachers and office workers.

A report about how much these workers should be paid was made in 2016, but the government did not use it until July 2021.

Because of that delay, workers did not get an extra payment called dearness allowance for more than five years.

Workers went to court, and the court said the government should make a plan to pay them.

The state government says the total bill for this missed money is about Rs 14,191 crore, which is a huge amount.

The government says it has already paid more than Rs 6,000 crore of that bill.

A minister named Harpal Singh Cheema says older governments caused this problem and left the bill behind.

He says the report was made by one old government and that another old government did not pay anything toward the money.

The court recently made another decision about the dearness allowance, and the state government is thinking about what to do next.

The government says Punjab already pays its workers very well, so it wants to check if it must follow the court's rule.

Key facts

State
Punjab
Finance Minister
Harpal Singh Cheema
Total liability
Rs 14,191 crore
Amount paid
Over Rs 6,000 crore
Pay commission report prepared
2016 (SAD-BJP government)
Report implemented
July 2021
Arrears period
January 1, 2016 – July 2021
Press conference location
Chandigarh

Quotes

Harpal Singh Cheema

Punjab Finance Minister

“The state government's legal argument was that a state could not simultaneously sustain both the highest basic pay scales and the highest Central DA rates when the state's pay structures were already significantly higher.”
thehansindia.com
“Out of the total liability of Rs 14,191 crore, the AAP government has already paid over Rs 6,000 crore to employees. The High Court accepted the liquidation plan, and its implementation is proceeding smoothly.”
thehansindia.com

Sources

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